- 130 -
required to pledge their First Savings stock to secure a loan
from First Hawaiian Bank to provide partial financing for the
acquisition. Mr. Kersting further testified that, following the
initial acquisition, he arranged for the acquiring group to
relinquish their interest in First Savings and become
shareholders of a newly organized Kersting holding company known
as Investors Financial Corp. (Investors Financial), which was to
be a holding company for First Savings. Mr. Kersting testified
that initially he had been erroneously informed that regulatory
approval was not required for Investors Financial to serve as a
holding company for First Savings. Mr. Kersting testified that
the Federal Home Loan Bank Board eventually approved Investors
Financial as a holding company for First Savings.
D. Mr. Alexander
Mr. McWade subpoenaed Mr. Alexander to testify at the trial
of the test cases. The Government paid Mr. Alexander's travel,
food, and lodging expenses while he was in Hawaii. Unlike most
witnesses, Mr. Alexander remained in Hawaii during the entire
trial; this was pursuant to arrangement with Mr. McWade so that,
as previously described, Mr. Alexander could serve as an
undeclared consultant or assistant to Mr. McWade. The record
does not reflect the extent to which Mr. McWade actually relied
upon Mr. Alexander as an assistant or consultant during the trial
of the test cases.
Mr. McWade's direct examination of Mr. Alexander focused
largely on the details of the First Savings acquisition.
Page: Previous 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 NextLast modified: May 25, 2011